2016 (11) TMI 23 - CESTAT BANGALORE

2016 (11) TMI 23 - CESTAT BANGALORE - TMI - Interest on delayed refund - banking and other financial services - discount/commissions received by the appellant from the merchant establishments in connection with credit card transactions liable to payment of service tax and tax paid upon the same - refund claimed afterwards, refund was allowed - whether the appellant is entitled to get interest on delayed refund? - Section 11BB - Held that: - the issue stands decided in the case of Ranbaxy Laborat .....

sanctioned and paid by the Assistant Commissioner vide his order dated 10.1.2007. The appellant has claimed that they are entitled for payment of interest for the delayed payment of refund. The original authority as well as the commissioner (A) took a view that the appellant is not eligible for any payment of interest under Section 11BB. Hence the present appeal before the Tribunal. 2. Heard Shri Lalitha Ramewaran, learned CA for the appellant-Bank and Shri Ezhilmathi, learned AR for the Revenue .....

tted that they are entitled to refund from 22.6.2006 to 10.1.2007. 4. Learned DR fairly agrees that the issue is covered by the apex court judgment. 5. We find that the refund claim filed on 22.3.2006 has been sanctioned and paid on 10.1.2007. The issue of payment of interest on delayed refunds stands settled by the decision of the Hon ble Supreme Court in the case of Ranbaxy Laboratories Ltd. (supra). The apex court has held as follows: Section 11BB, the pivotal provision, reads thus : 11BB. In .....

after the expiry of three months from the date of receipt of such application till the date of refund of such duty : Provided that where any duty ordered to be refunded under sub-section (2) of section 11B in respect of an application under sub-section (1) of that section made before the date on which the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immed .....

. 9. It is manifest from the afore-extracted provisions that Section 11BB of the Act comes into play only after an order for refund has been made under Section 11B of the Act. Section 11BB of the Act lays down that in case any duty paid is found refundable and if the duty is not refunded within a period of three months from the date of receipt of the application to be submitted under sub-section (1) of Section 11B of the Act, then the applicant shall be paid interest at such rate, as may be fixe .....